Blue Mountain Resort has agreed to pay an annual fee to Lower Towamensing Township over the next decade instead of an amusement tax being levied.

On a unanimous measure, the township’s board of supervisors on Tuesday approved a 10-year pilot agreement with Blue Mountain Resort.

Blue Mountain Resort will pay the township an annual payment of $50,000 in each of the first five years of the term, and $55,000 each in years 6 through 10.

The agreement goes into effect as of Jan. 1, 2027, and is to continue for 10 years, unless terminated earlier in accordance with this agreement

Each payment is due and payable on or before Jan. 1 of each year during the term, with the initial payment due on or before Jan. 1, 2027, and continuing through Jan. 1, 2036.

During the term, the township must not enact, levy, assess, impose, or collect any amusement tax on Blue Mountain Resort or on any admissions, charges, or receipts for Blue Mountain Resort’s operations within the township.

Township solicitor Jim Nanovic noted that the agreement avoids possible litigation.

The motion was not listed on the posted agenda, so the board amended the agenda during the meeting.

Supervisor Michael Takerer pointed out that the township is partners with Blue Mountain on the township’s sewer plant, which is also affected by the project.

“I think they were kind to enter (into) this pilot agreement with us,” Takerer said.

Resident Steve Meining said he believes the agreement is fair to everybody.

Before the vote, Connie Banko noted at one time the business was known as Little Gap Ski Area, then Blue Mountain Ski Area, and now Blue Mountain Resort.

Banko said they were just concerned because Blue Mountain Resort has become a year-round venue with numerous activities that continue to expand.

Connie and Rich Banko had pushed for the township to consider an amusement tax as an alternative to revenue besides the taxpayers.

At the conclusion of last month’s meeting, supervisors held an executive session to discuss the amusement tax.

No action was taken on the matter by the board after it returned from the executive session.

In July, supervisors tabled any action on the amusement tax in the absence of Nanovic.

In May, supervisors were asked to delay action on the matter.

At June’s meeting, the Bankos disputed several of the claims made by Blue Mountain Resort’s attorney, as well as several Blue Mountain employees.

General manager Jim Dailey said that while Blue Mountain is opposed to the tax because it feels it does not apply to them, it is responsive to its neighbors and the needs of the community.

At that meeting, Dailey once again reaffirmed his commitment, and pledged Blue Mountain’s support to the township.

Angela Farrell, a member of the township planning commission, said she was still questioning what happened to the $50,000 annual contribution the late Ray Tuthill, former owner of Blue Mountain Ski Area, used to make to the township.

Retired Blue Mountain Resort CEO and minority owner Barb Green said throughout its 49-year existence, there have been several years in the past where Blue Mountain had bad years from a revenue standpoint and that when she took over at Blue Mountain, it was $25,000, and it went toward the township’s recreation area until they told her they no longer needed the money.

Green explained the reason why Blue Mountain is so opposed to an amusement tax is because it’s competing for the summer with the Jersey Shore, and people going on their vacations.

Resident Steve Kuhns said he didn’t believe Green understands the way the amusement tax works.

Kuhns said they aren’t going after the ski area, but instead the extra stuff they’re doing because it’s bringing in more traffic and as a result damaging township roads.

At May’s meeting, Blue Mountain Resort’s attorney, Jan Budman of Buchanan Ingersoll & Rooney, warned the measure could spark an expensive legal fight and yield “zero dollars” from the ski area.

Budman said Pennsylvania legislation enacted in 2002 prohibits municipalities and school districts from levying amusement taxes on ski facilities.

He said Blue Mountain’s position is that even if the township passes an amusement tax, it would not apply to the resort.